Lecture 2
Business Model Canvas Examples
Jim Aloise
Team 187 NYC April 2013 week 2
Team 187 NYC April 2013 week 3
Team 187 NYC April 2013 week 4
Team 187 NYC April 2013 week 5
Team 187 NYC April 2013 week 6
Initial Business Concept
Global lighting industry - $100B
LED lighting - $6B, CAGR>40%
LED Replacement
Lamps
~500 million sockets
* $15/lamp =
~$750M
RIT NSF ICORPS Dec 14 2011
Enhanced cooling allows
• Higher lumen output
• Higher light quality
• Better reliability
8
Principal Investigator
Mentor
Dr. Satish Kandlikar
Gleason Professor
Mech. Engg., RIT
Dr. Suresh Sunderrajan
President, NNCrystal Corp.
Entrepreneurial co-Lead
Entrepreneurial co-Lead
Ankit Kalani
MS Engineering (Candidate) RIT
Kirthana Kripash
MBA (Candidate), RIT
Kandlikar and RIT Team – NSF I-Corps
Kandlikar and RIT Team – NSF I-Corps
Customers
“We are willing to
wait 5 to 7 years
for the price to fall
before we adopt
this technology on
a wide scale. ”
Channels
Key Partners
“If you bring us a
modular thermal
system that provides
better cooling at lower
cost, we would
definitely want to
explore this technology.
Kandlikar and RIT Team – NSF I-Corps
Other
Components
Arka Lights
Arka provides
replacement lamps
•LED array,
Lamp
components
•LED
luminaires
and Fixtures
Luminaire
Manufacturers
Distributor
Contractor
Project/Owner
Customers
Distribution and Supply
: The customer is
unwilling to buy the
product at current prices
: The final
consumer is highly
dependent on
Gatekeepers (suppliers)
for guidance in product
choice
• We lack
in
Lamp/Luminaire
production
• OEMs were interested in
incorporating our
enhanced thermal
module in their product
We had to pivot!
Kandlikar and RIT Team – NSF I-Corps
Arka provides
Thermal Modules
Arka Lights
OEMs
•LED
luminaires
and Fixtures
Other
Components
Distributor
Contractor
•Institutions,
Home
Owners,
Distributors
Project/Owner
Customers
Heat Exchanger
Manufacturer
Environment
We would like
to enter into a
partnership to
develop heat
pipe based
products.
Key Partners
• Our competencies lay primarily in the heat pipe
industry
• The most encouragement came from a heat
exchanger manufacturer who is looking to
expand his product line.
• Our Business Model iterated; we will now
focus on heat pipe based solutions in
diverse applications.
Kandlikar and RIT Team – NSF I-Corps
Commercial PAR 38
Arka Prototype
52 °C (max)
37 °C (max)
• Arka prototype runs 15 C cooler, allowing more LED placement per
lamp
• Prototype delivers 100 % more lumens for the same form factor
• ~30% lower cost/unit for similar lumen output
• The weight of Par38 is 65 percent lower, and the manufacturing
cost is $4.50 (current module costs about $2.20)
RIT NSF ICORPS Dec 14 2011
18
Design
Sources and
Technical
Experts
Arka
Lights
Heat Exchanger
Manufacturer
Division?
Partnership?
Market
Market
…
• Negotiations with Heat Exchanger
Manufacturer (HEM) ongoing.
• Arka provides::IP, heat transfer expertise,
design
• HEM provides: Manufacturing, distribution and
sales channels
• Arka will be proactive in exploring other market
opportunities.
– Additional revenue/cost models will be explored using
the methodology of this class
Kandlikar and RIT Team – NSF I-Corps
• The Process:
– Iterations occur organically when you respond to
market and consumer needs.
– Explore unconventional opportunities, be OPEN,
and be aware that potential partners may be sitting
next to you in a plane. I probably met my future
prototyping partner on my way to Stanford.
• The Market:
– Understand your customers, channels and
partners
– It’s about money – customer’s, partner’s and yours –
respect that without forgetting your core values.
Kandlikar and RIT Team – NSF I-Corps
Total Customers Contacted: 86
RIT NSF ICORPS Dec 14 2011
23
Week 1 - 9
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